essential terms explained in plain language.
115 terms
Tax exemption order — instruction to your bank to not withhold tax on investment income up to €1,000/year (2024).
Checking / current account — the standard bank account for daily transactions in Germany.
Liability insurance — covers damage you cause to third parties. Highly recommended in Germany.
Direct debit — an automated payment where a creditor pulls money from your account with your pre-authorisation.
Credit reference agency — Germany's main credit rating agency. A negative SCHUFA score can affect loans, rentals, and mobile contracts.